Durham international Manufacturing Company (DIMCO) manufactures electronic products like hair dryers, humidifiers, and massagers. They sell their finished products to their markets in the USA and other parts of the world. DIMCO supply chain begins with their raw materials and product components suppliers. The supply chain then proceeds to distributors after the products have been manufactured. According to the company CEO, Lucille Jenkins, it is important for the firm to embrace supply chain management in order to increase its operational profitability.
In a bid to increase its operational profitability, the company began by integrating its internal processes and is currently planning to integrate the external processes. It is important for the company to begin with the suppliers first before moving to the distributors to make operational planning easier.
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Overall, the best way to manage external suppliers is through integration by functions. DIMCO should embrace a function-by-function approach in order to realize high returns from the supply chain. The all-inclusive approach should include all functions from the point of raw materials extraction, manufacturing, and distribution. Further, the approach encompasses recycling some of the products returned by clients. The higher return in this approach is achieved by assigning functional responsibility to people who are best positioned to handle them at low charges and within a short time.
With regard to external distributors, the company should form a partnership with distribution companies. There should be many distribution centers from where the company can distribute to the wholesalers. Importantly, the company should improve delivery speed, customer services, and infrastructure. Lastly, according to the nature of electronics, special transport mechanism should be devised for certain items.
